OKLAHOMA
CITY, June 7, 2022 /PRNewswire/ -- Mammoth
Energy Services, Inc. (NASDAQ: TUSK) ("Mammoth" or the "Company")
is calling on the Puerto Rico Electric Power Authority ("PREPA") to
release the $40.4 million shown by
PREPA as available in its emergency account funded by the Federal
Emergency Management Agency ("FEMA") toward payment for the
electric grid restoration work completed by Mammoth's wholly-owned
subsidiary, Cobra Acquisitions LLC ("Cobra"), more than three years
ago in Puerto Rico in the
aftermath of Hurricane Irma and Hurricane Maria.
In a document, dated May 11, 2022,
entitled "13-week cash flow update," PREPA indicated that
$40.4 million remains available in
PREPA's emergency account for Cobra's restoration work. The 13-week
cash flow update, including page 9 referencing the $40.4 million in available funds, was published
by the Puerto Rico Fiscal Agency and Financial Advisory Authority
("PRFA") on its website, subject to a number of qualifications,
limitations and cautionary statements included therein, and is
publicly available at
https://www.aafaf.pr.gov/wp-content/uploads/13-week-cash-flow-update-05-11-2022.pdf.
Information on the PRFA website does not constitute part of this
news release.
As of the date of this news release, PREPA owes Cobra in excess
of $350 million, including over
$123 million in accrued and unpaid
interest, for such restoration work. This account receivable
accrues the contractual interest at the rate of over $3.3 million per month. Mammoth continues
to vigorously pursue the collection of this severely delinquent
account receivable.
Mammoth's Chief Executive Officer, Arty Straehla, commented:
"It is inexplicable that PREPA is continuing to breach
their contractual obligations, especially when their own financial
documents indicate that $40.4 million
of cash for work performed by Cobra remains in a PREPA emergency
account. Our work in Puerto Rico
has stood the test of time, and yet nearly half a decade later, we
are still seeking an explanation from PREPA about their ongoing
obfuscation. This trend sends a chilling message to anyone
considering doing business in Puerto
Rico, particularly during any future natural disasters.
Furthermore, as the monthly interest on the debt continues to
accrue, the real victims here are the people of Puerto Rico who will ultimately get stuck with
the tab. Enough is enough, the apparent funds in the PREPA account
have been provided by FEMA for payment to Cobra, and it is long
past time for PREPA to pay its bills."
For more information related to the Puerto Rico situation, please visit:
https://puertorico.mammothenergy.com/
Mammoth Energy Services, Inc.
Mammoth is an integrated, growth-oriented energy services
company focused on the construction and repair of the electric grid
for private utilities, public investor-owned utilities and
co-operative utilities through its infrastructure services
businesses. The Company also provides products and services to
enable the exploration and development of North American onshore
unconventional oil and natural gas reserves. Mammoth's suite of
services and products include: infrastructure services, well
completion services, natural sand and proppant services, drilling
services and other energy services. For more information, please
visit www.mammothenergy.com.
Contact:
Mark Layton,
Chief Financial Officer
mlayton@mammothenergy.com
(405) 608-6007
Investors:
Rick
Black
rblack@dennardlascar.com
(832) 435-0026
Forward-Looking Statements and Cautionary
Statements
This news release (and any oral statements
made regarding the subjects of this release, including on the
conference call announced herein) contains certain statements and
information that may constitute "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of
1934, as amended, and the Private Securities Litigation Reform Act
of 1995. All statements, other than statements of historical facts
that address activities, events or developments that Mammoth
expects, believes or anticipates will or may occur in the future
are forward-looking statements. The words "anticipate," "believe,"
"ensure," "expect," "if," "intend," "plan," "estimate," "project,"
"forecasts," "predict," "outlook," "aim," "will," "could,"
"should," "potential," "would," "may," "probable," "likely" and
similar expressions, and the negative thereof, are intended to
identify forward-looking statements. Without limiting the
generality of the foregoing, forward-looking statements contained
in this press release specifically include statements, estimates
and projections regarding the Company's business outlook and plans,
future financial position, liquidity and capital resources,
operations, performance, acquisitions, returns, capital expenditure
budgets, costs and other guidance regarding future developments.
Forward-looking statements are not assurances of future
performance. These forward-looking statements are based on
management's current expectations and beliefs, forecasts for the
Company's existing operations, experience and perception of
historical trends, current conditions, anticipated future
developments and their effect on Mammoth, and other factors
believed to be appropriate. Although management believes that the
expectations and assumptions reflected in these forward-looking
statements are reasonable as and when made, no assurance can be
given that these assumptions are accurate or that any of these
expectations will be achieved (in full or at all). Moreover, the
Company's forward-looking statements are subject to significant
risks and uncertainties, including those described in its Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K and other filings it makes with the SEC,
including those relating to the Company's acquisitions and
contracts, many of which are beyond the Company's control, which
may cause actual results to differ materially from historical
experience and present expectations or projections which are
implied or expressed by the forward-looking statements. Important
factors that could cause actual results to differ materially from
those in the forward-looking statements include, but are not
limited to: any continuing impacts of the COVID-19 pandemic,
related global and national health concerns and economic
repercussions; demand for our services; the volatility of oil and
natural gas prices and actions by OPEC members and other exporting
nations affecting commodities prices and production levels; the
impact of the current Russian/Ukrainian military conflict on the
global energy and capital markets and global stability; operational
challenges relating to the COVID-19 pandemic and efforts to
mitigate the spread of the virus, including logistical challenges,
protecting the health and well-being of our employees, remote work
arrangements, performance of contracts and supply chain
disruptions; inflationary pressures; the outcome of ongoing
government investigations and other legal proceedings, including
those relating to the contracts awarded to the Company's subsidiary
Cobra Acquisitions LLC ("Cobra") by the Puerto Rico Electric Power
Authority ("PREPA"); the failure to receive or delays in receiving
governmental authorizations, approvals and/or payments, including
payments with respect to the PREPA account receivable for prior
services to PREPA performed by Cobra; the Company's inability to
replace the prior levels of work in its business segments,
including its infrastructure and well completion services segments;
risks relating to economic conditions; impacts of the recent
federal infrastructure bill on the infrastructure industry and our
infrastructure services business; the loss of or interruption in
operations of one or more of Mammoth's significant suppliers or
customers; the loss of management and/or crews; the outcome or
settlement of our litigation matters, including the adverse impact
of the recent settlement with MasTec Renewables Puerto Rico, LLC,
and the effect on our financial condition and results of
operations; the effects of government regulation, permitting and
other legal requirements; operating risks; the adequacy of capital
resources and liquidity; Mammoth's ability to continue to comply
with, or if applicable, obtain a waiver of forecasted or actual
noncompliance with certain financial covenants and comply with
other terms and conditions under our recently amended revolving
credit facility; weather; natural disasters; litigation; volatility
in commodity markets; competition in the oil and natural gas and
infrastructure industries; and costs and availability of
resources.
Investors are cautioned not to place undue reliance on any
forward-looking statement which speaks only as of the date on which
such statement is made. We undertake no obligation to correct,
revise or update any forward-looking statement after the date such
statement is made, whether as a result of new information, future
events or otherwise, except as required by applicable law.
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SOURCE Mammoth Energy Services, Inc.